Chapter Fourteen

Setting Priorities for

Businesses and Brands –
The Exit, Milk, and
Consolidate Options
© 2007 John Wiley & Sons

Copyright © 2007 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in
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Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-1

 The Growth-Share Matrix
R&D
Market Growth Rate
Stars Problem Children
High

Cash Cows Dogs

Low
© 2007 John Wiley & Sons

High Low
Competitive Position
(Ratios of Share-to-Share of Largest Competitor)

Chapter 14 – Setting Priorities for Businesses and Brands Figure 14.1 PPT 14-2
 The Market Attractiveness-Business
Position Matrix
Market Attractiveness
High Medium Low

Invest/
High
Business Position

Grow
Medium

Selective
Investment
© 2007 John Wiley & Sons

Harvest/
Low

Divest

Chapter 14 – Setting Priorities for Businesses and Brands Figure 14.2 PPT 14-3
 Evaluating Ability to Compete

• Organization • Distribution
• Growth • Technology Skills
• Share by Segment • Patents
• Customer Loyalty • Marketing
• Margins • Flexibility
© 2007 John Wiley & Sons

Chapter 14 – Setting Priorities for Businesses and Brands Figure 14.2 PPT 14-4
 Evaluating Market Attractiveness

• Size • Price levels

• Growth
• Customer Satisfaction
Levels
• Competition: Quantity,
© 2007 John Wiley & Sons
• Profitability
• Technology
• Governmental regulations
• Sensitivity to Economic

Types, Effectiveness, Trends

Commitment

Chapter 14 – Setting Priorities for Businesses and Brands Figure 14.2 PPT 14-5
 The Strategic Brand Consolidation Process
Brand
BrandAssessment
Assessment
••Brand
BrandEquity
Equity
••Business
BusinessStrength
Strength
Strategic
StrategicFit
Fit

Prioritize
Prioritizethe
theBrands
Brands
••Strategic
StrategicBrand
Brand
••Brands
Brandswith
withspecialized
specializedroles
roles
••Cash
Cashcowcowrole
role
••Eliminate
Eliminate
••On-notice
© 2007 John Wiley & Sons

On-notice

Develop
Developthe
theRevised
RevisedBrand
BrandPortfolio
PortfolioStrategy
Strategy

Design
Designand
andImplement
Implementthe
theMigration
MigrationStrategy
Strategy

Chapter 14 – Setting Priorities for Businesses and Brands Figure 14.3 PPT 14-6
 Key Learnings
• The exit decision, even though it is psychologically and
professionally painful, can be healthy both for the firm because it
releases resources to be used elsewhere, but even for the divested
business, which might thrive in a different context.
• A milking or harvest strategy (generating cash flow by reducing
investment and operation expenses) works when the involved
business is not crucial to the firm financially or synergistically. For
milking to be feasible, though, sales must decline in an orderly way.
• Prioritizing and trimming the brand portfolio provides another
© 2007 John Wiley & Sons

perspective on prioritizing businesses, even clarify brand offerings,

and can remove the paralysis of not being able to brand new
offerings. A five-step prioritization process involves identifying the
relevant brand set, assessing the brands, prioritizing brands, creating
a revised brand portfolio strategy, and designing a transition strategy.

Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-7

 Ancillary Slides
© 2007 John Wiley & Sons

Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-9

 “There is nothing so useless as doing
efficiently that which should not be
done at all.”
- Peter Drucker
© 2007 John Wiley & Sons

Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-10

 “If you want to succeed, double
your failure rate.”
-Thomas Watson
founder, IBM
© 2007 John Wiley & Sons

Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-11

 “Anyone can hold the helm when
the sea is calm.”
- Publilius Syrus
© 2007 John Wiley & Sons

Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-12